23 Jul, 2009
Personal Bankruptcy Proceedings in Singapore
Posted by: Singapore Entrepreneur In: Business in Singapore
So long as you owe someone more than S$10,000, you can declare yourself a bankrupt if you have no means to pay up. Your creditor can also commence a bankruptcy proceeding against you.
Debt Repayment Scheme
An amendment has recently been attached to The Bankruptcy Act providing for a Debt Repayment Scheme and is applicable to all bankruptcy applications filed on or after 18 May 2009.
The scheme is designed to assist debtors who owe less than $100,000 to repay their debts over a fixed period of time and avoid being declared a bankrupt- which has legal repercussions (such as restricted travel overseas and ineligibility for trusteeship or directorship for a fixed period of time). However, if you are a sole proprietor, a partner of a firm or a partner in a limited liability partnership, then this scheme may not apply to you. You can voluntarily make arrangements with the creditor to avoid bankruptcy.
Bankruptcy Order Timeline
A person can be made a bankrupt approximately 4 to 6 weeks from the date of the issue of the bankruptcy originating summons.
Alternatives to Bankruptcy
(1) Private Arrangements
(2) The debtor may apply to the court to make a proposal for voluntary arrangements
(3) A creditor can seek recovery of a debt through a court order or judgement
(4) Alternative dispute resolution in court
For more details, please visit the Singapore Supreme Court website.